Kiffmeister’s #Fintech Daily Digest (20260214)

February 14, 2026February 14, 2026 ~ kiffmeister

Bank of Russia to Conduct Study on the Creation of a Russian Stablecoin (TASS)

Russia’s TASS news agency reported that the Bank of Russia plans to conduct a study in 2026 on the feasibility of creating a Russian stablecoin. First Deputy Chairman of the Bank of Russia Vladimir Chistyukhin said “we have plans to conduct a study this year where we will once again assess this situation. Indeed, our traditional position is that this is not allowed, but taking into account the practice of a number of foreign countries, we will once again look at what risks and prospects there are here and bring this up for public discussion”. [TASS]

Indian Government to Launch CBDC-Based Public Distribution System Pilot (Financial Express)

India’s Union Home Minister Amit Shah reportedly announced the February 16, 2026 launch of India’s first central bank digital currency (CBDC)-based public distribution system pilot. It introduces subsidy transfers for foodgrains through the Reserve Bank of India’s CBDC platform. Under the pilot phase, 26,333 families across the Sabarmati zone of Ahmedabad, Surat, Anand, and Valsad receive digital tokens in their wallets containing details of commodity, quantity, and price. Beneficiaries using smartphones authenticate transactions by scanning QR codes at fair price shops, while those with feature phones receive one-time passwords through an Aadhaar-based verification system. The programmable CBDC coupons can only be used to purchase specified foodgrains at authorized ration shops and cannot be converted to cash, creating a clear audit trail of grain movement and subsidy utilization. [Financial Express]

Some more backfilling of my central bank digital currency (CBDC) database:

Madagascar’s Project e-Ariary One-Pager (BFM)

[October 19, 2020] Banky Foiben’i Madagasikara (BFM) published a one-pager on its e-Ariary central bank digital currency (CBDC) project. The project aims to affirm monetary sovereignty, ensure financial system stability, promote financial inclusion, control physical currency circulation, and establish a modern payment system in response to the global shift toward digital payments, cryptocurrencies, and new financial actors accelerated by COVID-19. The project follows a cautious two-phase approach: first conducting analysis, design, and experimentation, then proceeding to deployment only if the pilot phase proves successful, while carefully managing potential impacts on monetary and financial stability. [BFM]

Upcoming Speaking Engagements:

The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! [Register here and get 20% off the regular ticket price by using the Kiffmeister20 code!]

I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20260207)

February 7, 2026February 7, 2026 ~ kiffmeister

Universal Launches UAE’s First Central Bank-Registered USD Stablecoin (Universal Digital)

[January 29, 2026] Universal Digital Intl Limited become the first Foreign Payment Token Issuer registered by the Central Bank of the United Arab Emirates (UAE), alongside the launch of USDU, the first USD-backed stablecoin to be registered as a Foreign Payment Token under the UAE’s Payment Token Services Regulation. This makes USDU the only compliant USD settlement option for digital assets in the UAE market. The stablecoin is backed 1:1 by reserves held in safeguarded accounts at Emirates NBD and Mashreq, with Mbank providing corporate banking support, and features monthly independent attestation by a global accounting firm. Universal, regulated by Abu Dhabi Global Market’s Financial Services Regulatory Authority, is partnering with AECoin, the first licensed UAE Dirham (AED) stablecoin in the UAE, for future AED conversions and with Aquanow for broader institutional distribution, positioning USDU as a bridge between traditional financial systems and the emerging digital asset economy both domestically and internationally. [Source: Universal Digital]

Some more backfilling:

Potential Implementation of Timor-Leste eCentavos (BCTL)

[September 6, 2024] Banco Central de Timor-Leste (BCTL) published its 2025-2035 Strategic Plan for Financial Sector Development in which it discussed its plans to possibly issue eCentavos central bank digital currency (CBDC), as part of its strategy to modernize the financial system, enhance payment efficiency, and promote financial inclusion. The project will follow a phased approach starting with a comprehensive feasibility study in 2025 that examines potential benefits, challenges, and lessons from other central banks’ CBDC experiences. This may be followed by pilot testing in at least five municipalities in 2026, and full-scale implementation in 2028. The plan emphasizes the importance of assessing technological resilience, privacy and security concerns, user adoption, and interoperability with existing financial systems during the gradual rollout. [Source: BCTL]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260128)

January 28, 2026January 28, 2026 ~ kiffmeister

Tether Launches USA₮, the Federally Regulated, Dollar-Backed Stablecoin (Tether)

Tether launched USA₮, a U.S. dollar-backed stablecoin specifically designed for the U.S. market under the GENIUS Act framework. Issued by Anchorage Digital Bank (America’s first federally regulated stablecoin issuer), USA₮ aims to provide institutions with a compliant digital dollar alternative while Tether’s global USD₮ continues operating worldwide. The stablecoin features Cantor Fitzgerald as reserve custodian, bank-grade compliance infrastructure, and is initially available on major exchanges including Bybit, Crypto.com, Kraken, OKX, and Moonpay. This launch represents Tether’s effort to strengthen U.S. dollar dominance in the digital economy while meeting American regulatory standards. The press release notes that Tether is the 17th-largest holder of U.S. Treasuries globally, ahead of sovereign holders including Germany, South Korea, and Australia. [Source: Tether]

ECB Paves Way for Acceptance of DLT-Based Assets as Eligible Eurosystem Collateral (ECB)

The European Central Bank (ECB) announced that it will accept marketable assets issued using distributed ledger technology (DLT) as eligible collateral for Eurosystem credit operations starting March 30, 2026. These DLT-based assets must meet standard Eurosystem collateral eligibility criteria and be available for settlement in systems compliant with the Central Securities Depository Regulation (CSDR) and reachable via TARGET2-Securities (T2S). The Eurosystem is also launching a work plan to explore whether DLT-native assets not represented in traditional securities settlement systems could become eligible collateral in the future, taking a staggered approach that considers market developments and evolving regulations like the DLT Pilot Regime and Markets in Crypto-Assets Regulation (MiCAR). This initiative reflects the ECB’s commitment to supporting innovation and technological progress in financial markets while maintaining safety and efficiency standards. [Source: ECB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260107)

January 7, 2026January 7, 2026 ~ kiffmeister

RAKBANK Receives In-Principle Approval to Launch a Dirham-Backed Stablecoin (RAKBANK)

RAKBANK became the latest United Arab Emirates (UAE) bank to received in‑principle approval from the central bank to issue a fully reserved, 1:1 Dirham-backed stablecoin. Al Maryah Community Bank secured in-principle approval in October 2024 and full licensing in December 2024 for its AE Coin, and Zand (an “AI-powered bank) received full approval in November 2025 for its Zand AED stablecoin. The Central Bank of the UAE’s Payment Token Services Regulation restricts payment tokens to Dirham-backed or specifically approved fiat-referenced stablecoins for onshore payments, effectively steering merchant crypto acceptance toward Dirham stablecoins. In parallel, Dubai’s Virtual Assets Regulatory Authority has finalized Version 2.0 of its activity-based rulebooks, including requirements for fiat‑referenced stablecoins issued by Dubai‑incorporated virtual asset service providers, creating a distinct but complementary regime for Dubai and its free zones. [Source: RAKBANK via Zaya.com]

Lloyds and Archax Complete UK’s First Public Blockchain Transaction Using Tokenised Deposits (Lloyds)

Lloyds Banking Group has completed the United Kingdom’s first public blockchain transaction using tokenized deposits. The transaction involved Lloyds issuing tokenised deposits on the Canton Network (a public blockchain for regulated financial markets) to purchase a tokenised Gilt from Archax, demonstrating how traditional banking can integrate with blockchain technology. Lloyds believes that this innovation offers businesses key benefits including instant settlement, the ability to earn interest while maintaining regulatory protections, access to wider securities trading, automated smart contracts, and enhanced transparency—all while preserving the security of traditional deposits under the Financial Services Compensation Scheme. [Source: Lloyds]

A Framework for Understanding the Vulnerabilities of New Money-Like Products (FRB)

The Federal Reserve (FRB) published a paper that introduces a framework for analyzing vulnerabilities in new money-like products by comparing them to money market funds (MMFs), which have well-documented risks. The authors examine five key features that contribute to vulnerabilities: liquidity transformation, threshold effects, moneyness (perceived safety and liquidity), contagion risks, and reactive investors. They apply this framework to three emerging products: money market ETFs (MMETFs), tokenized MMFs, and stablecoins. The analysis finds that MMETFs have similar liquidity transformation to MMFs but reduced threshold effects due to market pricing; tokenized MMFs largely mirror their underlying MMF vulnerabilities but could become more money-like if token transfers can effect ownership changes; and stablecoins present mixed risks, with the 2025 GENIUS Act likely to standardize payment stablecoins and align them more closely with MMF characteristics. The framework emphasizes that vulnerabilities arise from combinations of these features rather than individual attributes, and that as these novel products evolve and become more familiar to investors, their non-structural features—particularly their perceived moneyness and investor base composition—will likely shift significantly. [Source: FRB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251229)

December 29, 2025December 31, 2025 ~ kiffmeister

China to Pay Interest on Digital Yuan in Bid to Boost Adoption (Bloomberg)

China will begin paying interest on its digital yuan (E-CNY) starting January 1, 2026, as part of efforts to boost adoption of the central bank digital currency (CBDC). Commercial banks operating digital yuan wallets will pay interest based on holdings, giving the digital currency the same legal status as traditional bank deposits. However, the initiative faces challenges: interest rates on demand deposits at major Chinese banks are currently just 0.05%, and the digital yuan has struggled to compete with established payment platforms like WeChat Pay and Alipay despite being piloted in over half of mainland provinces. [Source: Bloomberg]

Regulatory Responses to the Financial Stability Implications of Stablecoins (SSRN)

Ulrich Bindseil posted an updated version of his paper that examines the financial stability implications of stablecoin regulation, particularly regulations that prohibit remuneration to protect banks from deposit outflows. He argues that these particular regulations make stablecoin viability cyclically dependent on interest rates rather than addressing financial stability systematically. Additionally, the prohibition creates competitive distortions between European and U.S. stablecoin markets, because European Union (EU) regulations also prohibit stablecoin wallet providers from offering indirect returns, whereas U.S. regulations allow circumvention through third-party yield arrangements. This makes EU stablecoins relatively uncompetitive as stores of value. If protecting banks from deposit outflows is the goal, Bindseil proposes requiring stablecoin issuers to hold a proportion of reserves with the central bank at below-market rates. At the extreme, that proportion could be 100%, which would additionally reduce the risk of stablecoin runs. [Source: SSRN]

Lessons from Global CBDC Pioneers for Rwanda’s Next Leap (RBA)

The Rwanda Bankers’ Association (RBA) published an analysis of pioneering central bank digital currency (CBDC) implementations in the Bahamas (Sand Dollar), Jamaica (JAM-DEX), and Nigeria (eNaira). Using quantitative pre- and post-launch data analysis, the study finds that theoretical fears of bank disintermediation did not materialize—commercial bank deposits actually grew significantly in all three countries after CBDC introduction. The research reveals that CBDC rollouts coincided with broader macroeconomic shifts including tighter monetary policy and economic rebounds, while direct effects on inflation remained statistically insignificant. However, the primary challenge across all cases was achieving widespread public adoption rather than financial instability, with uptake remaining extremely low despite technical readiness. The paper concludes that for Rwanda, currently in its CBDC Proof-of-Concept phase, success will depend less on mitigating theoretical risks and more on delivering a compelling value proposition that addresses the country’s specific challenges including limited smartphone ownership (34.3%), low internet access (29.8%), and the need for enhanced payment system resilience, financial inclusion, and reduced cross-border remittance costs. [Source: RBA]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251224)

December 24, 2025December 24, 2025 ~ kiffmeister

Russian Ministry of Finance Approves Some Digital Ruble Payments for Government Budget Expenditures (MoF)

[December 18, 2025] The Russian government has approved a list of budget expenditures using the digital ruble starting January 1, 2026, reported on the website of the Ministry of Finance (MoF). The list includes social security payments, and salaries and other payments to staff, as well as expenses for capital construction, repair and maintenance of state-owned facilities. Also, the use of the digital ruble will become available for transfers to budgets and transfers of funds to federal institutions. Furthermore, from July 1, 2027, corresponding transactions with regional and local budgets, as well as transactions with extra-budgetary funds and recipients of funds, will become available. Payments from the budget will be made in digital rubles only if the recipients wish. [Source: Russian MoF]

South Korea to Test Distributing Government Subsidies in New CBDC Test Phase (Decenter)

The South Korean press is reporting that the Bank of Korea (BoK) is preparing to launch a new phase of its “Project Hangang River” wholesale central bank digital currency (CBDC) project, focusing on distributing government subsidies. A first three-month proof-of-concept phase with commercial banks, during which central bank authorities made it clear that it was actually testing tokenized deposits, reportedly ended in June 2025. Unfortunately the central bank itself has been silent on the project so we have to rely on press reports that are often short on details, like whether the purported second test will really be about wholesale CBDC or perhaps tokenized deposits again, or a hybrid in which tokenized deposits are settled in wholesale CBDC. [Source: Decenter]

European Council Agrees Position on the Digital Euro and on Strengthening the Role of Cash (European Council)

[December 19, 2025] The European Council released a 157-page document outlining its position on digital euro legislation, rejecting a proposal for an offline-only approach and insisting on both online and offline versions of the central bank digital currency (CBDC). While the digital euro is primarily intended for peer-to-peer and retail payments to reduce dependence on Visa and Mastercard, the Council envisions a broader scope including machine-to-machine payments for Industry 4.0, Web3 applications, and business-to-business conditional payments from the outset. The proposal also aims to safeguard acceptance of cash as a payment method throughout the euro area, and guarantee that people have access to cash and are free to choose their preferred payment method. It proposes to effectively ban non-acceptance of cash by retailers or service providers with a few exceptions, notably for payments for goods or services purchased at a distance, including online, and unmanned points of sale. [Source: European Council]

How New Regulations May Impact the Future of Stablecoins (CBPN)

Central Bank Payments News published an article by Ezechiel Copic that examines how new stablecoin regulations in the U.S. (GENIUS Act) and EU (MiCA) may impact the business models of stablecoin issuers. Both regulatory frameworks require 1:1 backing with high-quality liquid assets and prohibit interest payments to holders, but differ in prescribed asset allocations—the EU mandates 30-60% in bank deposits while the U.S. sets no specific limits. The analysis shows that while stablecoin issuers like Circle currently generate 95-99% of revenue from interest on reserve assets (primarily Treasury bills and reverse repos), they face significant interest rate risk as rates are expected to decline. However, projected growth in stablecoin supply to $1.4 trillion by 2030 could offset revenue losses from lower rates, resulting in modest revenue increases. The article concludes that Europe’s more prescriptive MiCA regulations may hinder stablecoin growth compared to the U.S. approach, and issuers may need to develop alternative revenue sources beyond reserve asset yields to maintain viable business models. [Source: CBPN]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251220)

December 20, 2025December 20, 2025 ~ kiffmeister

European Council Gives Digital Euro the Provisional Green Light (European Council)

The Council of the European Union (“European Council”) has agreed on its positions on introducing a digital euro and clarifying the legal tender status of cash, for its negotiations with the European Parliament. The digital euro would complement physical cash, be backed by the European Central Bank (ECB), and available for payments across the euro area by potentially 2029, with limits on holdings to prevent it being used as a store of value and mandatory free basic services for consumers. Once the proposal to establish the legal framework is adopted by the European Parliament and Council, it will ultimately be for the ECB to decide whether to issue the digital euro. The second position aims to strengthen cash by effectively banning its non-acceptance by retailers (with exceptions for online and unmanned sales), requiring member states to monitor cash acceptance and access, and establishing cash resilience plans for electronic payment disruptions. The Council will now begin negotiations with the European Parliament on both regulations. [Source: European Council]

Federal Reserve Board Proposes Limited-Purpose “Payment Account” (FRB)

The U.S. Federal Reserve Board (FRB) is seeking public comment on a new “payment account” designed for eligible financial institutions to use specifically for clearing and settling payments. Unlike traditional master accounts, payment accounts, holders could only maintain limited overnight balances (lesser of $500 million or 10% of total assets), would receive no interest on balances, and would have no access to the discount window or intraday credit. These accounts would only support specific payment services (Fedwire Funds, FedNow, National Settlement Service, and Fedwire Securities free transfers) that have automated controls to prevent overdrafts, while excluding services like FedACH and check processing. The streamlined account is intended to reduce risks to the Federal Reserve system while providing faster access (generally within 90 days) for legally eligible institutions that primarily need payment clearing and settlement capabilities rather than full banking services. Notably, it does not widen eligibility standards beyond those already in place for regular master account access. [Source: FRB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251216)

December 16, 2025December 16, 2025 ~ kiffmeister

Ethiopia’s Central Bank Eyes Digital Birr (Capital Ethiopia)

The National Bank of Ethiopia (NBE) has reportedly initiated an exploratory review of potential central bank digital currency (CBDC) frameworks, aimed at understanding global digital currency developments rather than representing a commitment to implementation. The assessment is situated within Ethiopia’s draft National Digital Payments Strategy and Digital Ethiopia 2025 framework, though the central bank anticipates continued primacy of cash given the country’s substantial rural and informal economy. In February 2025, the Ethiopian Parliament passed into law National Bank of Ethiopia (NBE) Proclamation No. 1359/2025, establishing a legal framework that permits the NBE to issue CBDC as legal tender. [Source: Capital Ethiopia]

PayPal Submits Applications to Establish an Industrial Bank (PayPal)

PayPal has filed applications with the Utah Department of Financial Institutions and the U.S. Federal Deposit Insurance Corporation (FDIC) to establish a Utah-chartered industrial loan company, to be called PayPal Bank. The proposed institution would focus on providing business lending services to U.S. small businesses, a market in which PayPal claims to have extended over $30 billion in credit to more than 420,000 business accounts globally since 2013. PayPal Bank would also offer interest-bearing savings accounts to customers and seek direct membership in card networks to support processing and settlement activities. The company cites operational efficiency and reduced reliance on third-party intermediaries as primary motivations. Customer deposits would receive FDIC insurance coverage subject to regulatory approval. [Source: PayPal]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251213)

December 13, 2025December 13, 2025 ~ kiffmeister

OCC Announces Conditional Approvals for Five National Trust Bank Charter Applications (OCC)

The U.S. Office of the Comptroller of the Currency (OCC) conditionally approved national trust bank charter applications from five major crypto-asset companies. Circle (First National Digital Currency Bank) and Ripple National Trust Bank received de novo charters. BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company were converted from state trust companies to national trust banks. These firms will now be able to offer regulated crypto-asset services nationwide without navigating complex state-by-state licensing. “The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy.” [Source: OCC]

DTCC Authorized to Offer New Tokenization Service (DTCC)

Depository Trust Company (DTC) received a No-Action Letter from the U.S. Securities and Exchange Commission (SEC), authorizing it to offer a tokenization service for real-world, DTC-custodied assets in a controlled production environment, with rollout expected in the second half of 2026. The three-year authorization covers highly liquid assets including Russell 1000 stocks, major index ETFs, and U.S. Treasury securities, allowing DTC to create digital versions with the same entitlements and protections as traditional assets. This milestone aims to enable 24/7 trading access, collateral mobility, and programmable assets while maintaining the same level of security and regulatory oversight, ultimately bridging traditional finance (TradFi) and decentralized finance (DeFi) ecosystems through DTCC’s ComposerX platform suite. [Source: DTCC]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251202)

December 2, 2025December 2, 2025 ~ kiffmeister

Operation Choke Point 2.0: Biden’s Debanking of Digital Assets (U.S. HCOFS)

The U.S. House Committee on Financial Services published an investigative report on “Operation Choke Point 2.0″—a coordinated effort by Biden Administration regulators to deny banking services to digital asset businesses and individuals. Through over 20 letters, thousands of documents, and two hearings, the Committee found that federal agencies (the Federal Reserve, FDIC, OCC, and SEC) used informal guidance, “pause” letters, non-objection requirements, and enforcement actions to pressure banks into cutting off crypto firms, rather than establishing clear regulations. This approach resulted in at least 30 entities being debanked, stifled American innovation, and drove businesses overseas. [Source: U.S. HCOFS]

Rwanda: Digital Currency POC Set for Next Year (NBR)

The National Bank of Rwanda (NBR) is planning to continue its e-FRW central bank digital currency (CBDC) proof-of-concept work in 2026. It will test technical feasibility, evaluate payment system integration, and develop recommendations for the legal framework prior to the overall technical design phase. These tests are being conducted in partnership with selected financial service providers, and the results will determine NBR’s next steps in the CBDC project. In all phases, consultation with the private sector and policy makers has been, and will be, emphasized. [Source: NBR]

Project Meridian Securities (BOE)

The Bank of England (BOE) published a summary of the findings of the Project Meridian Securities experiment that explored how synchronization can bridge traditional real-time gross settlement (RTGS) systems with tokenized securities platforms using distributed ledger technology (DLT). The project successfully demonstrated that synchronization enables atomic settlement in central bank money for tokenized securities transactions, allowing programmable features like automated repos and cross-platform liquidity management without requiring full infrastructure replacement. Key findings show that smart contracts can automate settlement workflows while maintaining the trust and safety of central bank money, supporting improved liquidity management and interoperability across diverse platforms. The experiments revealed that synchronization can extend programmability to traditional infrastructures cost-effectively, though questions remain about optimal architecture, scalability, and whether independent synchronization operators are needed in multi-platform environments. [Source: BOE]

How New Regulations Could Potentially Impact the Future of Stablecoins (VISA)

The VISA Economic Empowerment Institute published a report by Zeke Copic on how new stablecoin regulations across the US, EU, UAE, and Hong Kong are shaping the industry’s future. While all jurisdictions require 1:1 backing with high-quality liquid assets and prohibit interest payments to holders, the specific requirements vary—with the US GENIUS Act being more flexible than Europe’s MiCA regulation, which mandates 30-60% of reserves in bank deposits. Stablecoin issuers like Circle currently generate 95-99% of revenue from interest on reserve assets (primarily Treasury bills and reverse repos), making them highly vulnerable to interest rate fluctuations and counterparty risks, as demonstrated during the Silicon Valley Bank collapse. Although declining interest rates may reduce reserve income, projected growth in stablecoin supply (potentially reaching $1.6-3.7 trillion by 2030) could offset this impact, though issuers may need to develop alternative fee-based revenue streams to maintain viable business models under the new regulatory frameworks. [Source: VISA]

Upcoming Speaking Engagements: